now requires all registered advisory and planning firms to
detail their services, fees, disciplinary actions and possible conflicts
of interest -- in a readable, narrative form.

This is a good
step forward in a world where compensation is often masked and investor
disputes hidden from view. But they are not where your search for sound
investment advice should end.

These disclosure forms likely
won't include conflicts the adviser has gotten into with customers, even
if the firm paid money to resolve them before an arbitrator. And the
forms still remain difficult to find on the SEC's website.

, requires these forms to contain 18 sections
on fees, soft-dollar pay arrangements, investment strategies and
disciplinary histories, along with a supplement detailing each adviser's
background. The first part of these forms was due to be uploaded to the
SEC's website by Thursday. Many weren't, industry officials say, though
the SEC wouldn't say how many advisers missed the deadline.

Smaller
firms don't have to register with the federal regulator. But in Oregon,
at least, their forms are supposed to be filed with the

Some of the required
disclosures, such as disciplinary histories, already were expected of
advisers to present to first-time clients. But if you've ever looked at
these so-called Form ADVs on the SEC website, you know they are not
pleasing to the eye. They're dominated by checked boxes and
fill-in-the-blanks blankety-blanks.

What's more, those forms weren't filed in a centralized public location.

"The
last 10 years, they weren't even filed with the commission," said
Robert E. Plaze, the SEC's associate director of investment management,
told me on Friday. "You couldn't go on to the web and check out all the
advisers in your community."

The new forms are supposed to be easier to read. Some, such as one from

's is 16 pages and, though hardly fancy, written in a straightforward manner.

The forms detail each firm's fee schedule, how fees are collected and whether the firm pays others for client referrals. They also must disclose any soft-money arrangements the firm has with other parties.

Here's where conflicts of interest can arise. A firm might be more likely to use a brokerage that offers it free stuff or client referrals in return, even if it's not the lowest-cost option. Those potential conflicts are supposed be detailed on the new forms.

Unfortunately, these brochures are still hard to find on the SEC's website (see my accompanying instructions). They also can be long, their language still somewhat dense.

Worse, they might not have all the details you need to make an informed decision.

The SEC requires disclosure of any legal or disciplinary events "material" to your ability to judge their integrity. But the SEC decided last year that arbitration awards aren't among them.

Big Wall Street firms such as Morgan Stanley and Janus apparently objected to such disclosures. They said arbitration claims are easy to make and that arbitrators don't list the reasons for their award unless both parties agree. The SEC's Plaze said regulators feared that requiring disclosure would discourage brokerages in arbitration from agreeing to public findings.

"At the end of the day, we couldn't figure out how to overcome these issues," Plaze said.

View full sizeAn example of the new "plain English" brochure that investment advisers must provide prospective investors, this one from Becker Capital Management, Inc., of Portland.

, a Portland attorney who represents investors in brokerage disputes, found this ironic. In his experience, firms rarely agree to a "reasoned award" specifying why a panel decided as it did.

"As an investor attorney, I am always in favor of a reasoned award, but I have never had a case in 20 years in which the industry has agreed to a reasoned award," Banks said. "Why? They don't want any record of the findings against them."

In a quick scan Friday of four recent FINRA arbitration cases in Oregon, I found only one that included findings. I also found arbitration awards against advisers that weren't listed on their new brochures.

"Someday," Plaze says, "there may be a reconsideration of these arbitration rules."

, Registered Investment Advisers and their representatives must, under the federal Investment Advisers Act, abide by the fiduciary standard. That means they put your financial interests ahead of theirs. Most advisers and planners take that responsibility seriously. They have to. And if they do, they should tell you about their past arbitration awards -- provided you ask.

Kevin Anselm, Oregon's top investment regulator, insists her agency will check all the new brochures filed by the state's 300 registered advisers. She said the division will use its compliance database to review those awards and make sure all "material" events are properly disclosed.

"It's a pretty ornate system," said Anselm, head of enforcement at the state Division of Finance and Corporate Securities. "That's one of the reasons we urge people to call us if they have any questions. We can check beyond what the public can see."

Bottom line:

If you're looking for an adviser or planner, be sure to ask for their new disclosure form.

If you already have an adviser, ask for their new brochure. Read it closely. You might be surprised.